The jewellery that socialite Sheetal Mafatlal had not declared was worthRs 53,67,508 and this was a major case of smuggling,officials from the air intelligence unit (AIU) of Mumbai customs told the 19th Metropolitan Magistrate Court on Monday. Mafatlal arrived from London by British Airways flight BA 139 a little after midnight,according to a statement by Additional Commissioner of Customs (AIU) B S Nunwal. An official said she chose to walk through the green channel,which means that she had no goods to declare. If a passenger fails to declare goods worth over Rs 5 lakh,then the person is liable for prosecution on the approval of the Customs commissioner, said a Customs official. Hundreds of travellers pass through the green channel and we cannot intercept everybody. At the same time,there are many passengers who claim value added tax (VAT) refunds on purchase of goods abroad to avoid paying duties in two countries. We keep a tab on those passengers, the official said. Customs checked Mafatlal hand baggage and check-in luggage and uncovered an assortment of gold and diamond jewellery. She has admitted possession,carriage,ownership and recovery of the goods seized. She was arrested on Sunday, the official said. Mafatlal was detained between 1 and 1.30 am while government-approved valuators from the Gemological Institute of India and Export Promotion assessed how much her jewellery was worth. They pegged it at Rs 44,34,857 in foreign markets; this is known as Cost Insurance Freight. The figure of Rs 53,67,508 is the current market value in India,also know as present market value. Though Customs officials say they keep a tab on passengers seeking VAT refunds,it is not yet confirmed if Mafatlal had done so in the UK,with which India has a comprehensive Double Taxation Avoidance Agreement. Its a clear case of non-declaration of goods amounting to smuggling. The future course of our investigation will verify if there was any foreign exchange violation too, said the official.
